SOCIAL AD REVENUE

A PRESENTATION BY

Img	
  src:	
  h*p://ilgelatobistro.altervista.org/we-­‐are-­‐social/	
  
SOCIAL ADS ARE BECOMING VITAL
Spends on Traditional media is
important but budgets are
increasingly skewing towards
Digita...
SOCIAL AD SPENDS & REVENUE BY NETWORK
Google still dominates
accounting for 1/3rd of all
online advertising with
majority ...
TWITTER REVENUE & POTENTIAL
Twitter Advertising Revenue has increased by 124% Y-O-Y
91% of revenue comes from ads itself, ...
WHAT DO EXPERTS THINK?
Have you started using twitter for paid promotions? How is the future
for twitter? What are the inn...
Sagnik Ghosh,
VP & Head
Marketing,
AXIS Bank

“We have used paid
promotions on Twitter
for online festivals. It
worked for...
FACEBOOK REVENUE POTENTIAL
Money raised from IPO is being channeled towards introducing new social ad revenue
with focus o...
WHAT DO EXPERTS THINK?
Have you started using Facebook for paid promotions? How much do
you spend on an average? Has it ca...
Madan Sanglikar,
Co-founder & MD,
AD2C

“Yes very much & specially in the mobile
domain its very much imperative to use
FB...
LINKEDIN REVENUE POTENTIAL
LinkedIn has estimated first decline ever in ad revenue estimates
LinkedIn ad revenue is expect...
WHAT DO EXPERTS THINK?
Why is LinkedIn losing its sheen? How much do you spend on an
average? Does it work for lead genera...
Madan Sanglikar,
Co-founder & MD,
AD2C

“I don’t think LinkedIn is losing any sheen, its
just different from FB & Twitter....
DMTI KEY TAKE-AWAYS
The strategic acquisitions by Google, Facebook & Twitter is making ad revenue landscape more interesti...
If you found this synopsis helpful do drop in your comments to
rashmi.putcha@dmti.in

THANK YOU
Corp website: www.dmti.in
...
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Social Ad Revenue in India and Global

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This deck provides an analysis of social advertising across various social media platforms like Facebook, LinkedIn and Twitter. You will also find key observations by digital minds from the industry.

This is intended to highlight the trend of cannibalization of traditional media spends by specialized social channels. Our brand experts also cite the reasons of adapting to this medium as the preferred choice over the mediums they are comfortable with.

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Social Ad Revenue in India and Global

  1. 1. SOCIAL AD REVENUE A PRESENTATION BY Img  src:  h*p://ilgelatobistro.altervista.org/we-­‐are-­‐social/  
  2. 2. SOCIAL ADS ARE BECOMING VITAL Spends on Traditional media is important but budgets are increasingly skewing towards Digital Media By 2017, Ad spends worldwide on social media platforms like Facebook, Google+, Twitter, Pinterest, Instagram, Vine & others will exceed $10 Billion Source:  B2C  community  2014  
  3. 3. SOCIAL AD SPENDS & REVENUE BY NETWORK Google still dominates accounting for 1/3rd of all online advertising with majority revenue coming from Adwords, Adsense & YouTube Google is said to receive 45% of its channel subscription cost thus adding to its online ad revenue pie. FB had phenomenal run though & in digital main frame. Source:  eMarketer,  Mashable  
  4. 4. TWITTER REVENUE & POTENTIAL Twitter Advertising Revenue has increased by 124% Y-O-Y 91% of revenue comes from ads itself, registering an increase of 4% Even after strategic acquisitions of companies like Bluefin Labs and Trendrr, twitter will maintain healthy profit in 2014 Twitter ad revenue expected to reach $ 1 billion US dollars by end of 2014 In US alone Twitter ad revenue grew by 93% over previous year ($277 million for 1st three quarters) Source:  B2C  community  2014  
  5. 5. WHAT DO EXPERTS THINK? Have you started using twitter for paid promotions? How is the future for twitter? What are the innovations? In India
  6. 6. Sagnik Ghosh, VP & Head Marketing, AXIS Bank “We have used paid promotions on Twitter for online festivals. It worked for us. However, twitter needs to go beyond the usual tagging & DMs. Innovations like g+ (circles) or LinkedIn (groups) would work” Bhupendra Khanal, Co-founder, Simplify360 “We haven’t used it so far. Paid promotions will do well but it needs to be made easier. It has to be self serve & quick like FB ads. I believe a marketplace type of model much like sponsored tweets would work. They can aslo make right hand column for ads & more” Vikas Tandon, Managing Director, Indigo ConsultingLeo Burnett “We have not used it so far but have considered it in a few places. They need to make it an impression cost model and also have to ensure that the user experience is not compromised.”
  7. 7. FACEBOOK REVENUE POTENTIAL Money raised from IPO is being channeled towards introducing new social ad revenue with focus on developers labs Mobile ad revenue has increased 3x times (from 5.35% in 2012 to 15.80% in 2013) Major acquisition of Instagram showcases a good revenue potential Source:  EMarketer  2013     B2C  community  2014    
  8. 8. WHAT DO EXPERTS THINK? Have you started using Facebook for paid promotions? How much do you spend on an average? Has it cannibalized your display advertisement budget? In India
  9. 9. Madan Sanglikar, Co-founder & MD, AD2C “Yes very much & specially in the mobile domain its very much imperative to use FB. The spends are now above 40% of the total spends and it surely has cannibalized display. Native advertising opportunity packaged with the right targeting & pricing will keep on hurting the traditional display medium & that effect will be even more stronger in the mobility domain” Aditya Save, Head - Digital Mkting & Media, Marico India Ltd “We have used FB for paid promotions. However, I would not call it cannibalizing display ad spends, as the two are used for completely different objectives. FB ads are used also exclusively for the audience within that platform & for an engagement within that platform. Display ads are used for a wider gamut of objectives”
  10. 10. LINKEDIN REVENUE POTENTIAL LinkedIn has estimated first decline ever in ad revenue estimates LinkedIn ad revenue is expected to be around between $415 M - $420 M, lower than (forecasted) $421 in last 3 months of 2013 Total ad revenue estimated by LinkedIn is $1.5 billion Source:  Reuters  2013,  B2C  Community  2014  
  11. 11. WHAT DO EXPERTS THINK? Why is LinkedIn losing its sheen? How much do you spend on an average? Does it work for lead generation? What is so special for LinkedIn advertisement over other social channels? In India
  12. 12. Madan Sanglikar, Co-founder & MD, AD2C “I don’t think LinkedIn is losing any sheen, its just different from FB & Twitter. Linked is not as mass as Twitter & FB & the frequency of usage can never be the same. But LinkedIn cannot be ignored for B2B marketing or high value B2C services. So while it can’t be compared with FB & Twitter in terms user base & frequency of usage it gives you great depth for relevant categories from fitment perspective. LinkedIn need to offer better creative options & flexible pricing and can be very regular in all paid media campaigns” Aditya Save, Head - Digital Mkting & Media, Marico India Ltd “The choice of any media platform, is directly related to the audience that it attracts. Linkedin caters to a specific class of professionals, making access & connections easier. It has added a huge content piece, & even that is catering to the audience need of 'wanting expert POV, quickly'. It would be incorrect to compare it with other social platforms like FB. The reasons to choose either are completely different”
  13. 13. DMTI KEY TAKE-AWAYS The strategic acquisitions by Google, Facebook & Twitter is making ad revenue landscape more interesting and likeable for marketers & advertisers With consumers using social media beyond product and brand research, sales are increasingly being driven via socialmedia led offers or click through to a landing page Mobile centric innovations are adding more to companies ad revenue pie Increasing the ad revenue by balancing it with consumer experience and increase in user base is the key challenge for Google, Facebook, Twitter & LinkedIn Experts see future of LinkedIn shinning, provided there is a change in their way of doing media commerce. Promoted Tweets are increasingly becoming the choice of marketers for quick reach
  14. 14. If you found this synopsis helpful do drop in your comments to rashmi.putcha@dmti.in THANK YOU Corp website: www.dmti.in Our Programs: www.thedmti.com DMTI Flagship Program: www.thedmti.com/apdmm

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